Automakers selling cars in China banned from using 'autonomous driving' in ads
China is cracking down on how automakers advertise driver-assistance features, banning terms like "autonomous driving," "self-driving," and "smart driving," Reuters reported, citing a transcript of a meeting between the government and industry representatives.
The updated rule will also prohibit automakers from rolling out improvements via software updates to advanced driver-assistance systems in vehicles already in the hands of customers. Automakers must now test any upgrades or new features in ADAS and receive government approval before rolling it out via software update.
Wireless software updates that improve or fix features in vehicles — and first popularized by Tesla — have become a critical capability for automakers trying to stay competitive.
The mandate stems from growing concerns over vehicle safety and incidents of fatal crashes involving advanced driver-assistance systems. Last month, a Xiaomi Su7 sedan caught fire after crashing into a pole just seconds after the driver took over control from the ADAS.
It also follows Tesla's rollout of its "Full Self-Driving software" branding used for its advanced driver-assistance system. FSD is not a self-driving system and requires a human driver to remain engaged. In China, Tesla changed the FSD name to "Intelligent Assisted Driving."
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
19 minutes ago
- Business Insider
Things just keep getting more difficult in China for Elon Musk's Tesla
Tesla 's China nightmare just deepened — again. The latest blow came from Chinese smartphone and electric vehicle maker Xiaomi, which announced Thursday it had received close to 300,000 orders for its new YU7 electric SUV within an hour of its launch. The YU7, priced at the equivalent of $35,000 in China, is a direct competitor to Tesla's best-selling Model Y, which starts at $36,760. Xiaomi CEO Lei Jun didn't hold back during YU7's launch on Thursday, saying his company would "not accept defeat" and was officially taking up Tesla's long-standing challenge to compare products head-to-head. The SUV's price edge, paired with better specs and sky-high local enthusiasm, could spell trouble for Tesla's operations. "The new Xiaomi is probably Tesla's largest threat so far, not only in China but globally. It's very competitive and appealing," Felipe Muñoz, global analyst at JATO Dynamics, told Business Insider. Not just an EV company That threat goes beyond pricing and performance, according to Bill Russo, CEO of Shanghai-based consultancy Automobility. "They're not just an EV company," he told Bloomberg TV. "They're creating a fully integrated digital ecosystem, value proposition, which, in China, the world's biggest digital economy, resonates very, very well." Russo said Xiaomi is applying a "smartphone mindset" to vehicles — treating cars as digital terminals within a broader network of connected devices. With more than 600 million Xiaomi-branded smart devices in use globally, that ecosystem advantage could drive deeper customer loyalty than traditional automakers can muster. "They recognize this opportunity, they entered it, and in one year with one model, they're outselling Tesla in China," Russo said. "So I think you're going to see a pretty strong, positive momentum for this company going forward." Xiaomi's first car, the SU7, went on sale in China last year. Ford's CEO has called it "fantastic," and Business Insider's reviewer concluded that the EV "simply shouldn't drive this well given it's from a company that has not produced vehicles before." Tesla's plunging sales The YU7's launch comes at a difficult time for Tesla. According to data from Shanghai-based consultancy ThinkerCar, Tesla's battery electric vehicle sales in China dropped 18% year-over-year between January and May 2025. In contrast, rival BYD surged, selling 894,000 EVs globally over the same period, compared to Tesla's 603,000, overtaking it by a margin of 291,000 vehicles. BYD also overtook Tesla in global revenue last year, bringing in $107 billion versus $97.7 billion for Tesla. In April, BYD surpassed Tesla's sales in Europe for the first time, selling 7,230 battery-electric vehicles versus 7,165 for Tesla, according to JATO Dynamics data. "It's about time to get an all-new generation," he said. "However, based on the strategy implemented with other models, it doesn't seem that an all-new Model Y is coming anytime soon." He said that might not be a problem in the US or Europe, where Tesla still leads on specs and battery performance, but it is in China. "The rivals are catching up fast and the price war is very aggressive." Internal turmoil The growing pressure also seems to be straining operations. On Thursday, multiple outlets reported that Omead Afshar, Tesla's VP of manufacturing and a longtime Musk ally, had left the company. His departure follows that of Milan Kovac, head of the Optimus humanoid robot project, earlier this month. "The dismissal of Afshar is part of the game and Tesla's response to the increasing challenges in China, considering that it can't react fast from a product point of view," Muñoz said. "The Model Y is still one of China's top sellers, but it is not alone anymore." Meanwhile, Xiaomi is riding a wave of momentum. Its stock is up 72% this year, driven by EV success, smartphone dominance, and expansion into home appliances. Still, Muñoz cautioned against writing off Tesla just yet. "There's room for more models because the demand is still responding to the increasing offer. The YU7 is one of them, but it won't mean the defeat of Tesla," he said. "It will complicate life, but Tesla has already built a reputation of excellent EVs and is a pioneer in the EV industry." Not everyone is convinced Tesla can keep its edge. Russo noted that while Tesla led on software innovation, it lacks the localized integration that increasingly matters in China. "Tesla, as a software pioneer, you get consideration," he said. "But quite frankly, they don't have the digital ecosystem localized in the way the Chinese consumer wants them."
Yahoo
32 minutes ago
- Yahoo
Tesla fires VP of manufacturing Omead Afshar amid declining EV sales
June 26 (UPI) -- Tesla CEO Elon Musk fired the carmaker's vice president of manufacturing and operations following a falloff in auto sales in the nation's largest markets this year. Omead Afshar oversaw more than six upper-level employees in the company, including Troy Jones, Tesla's vice president of sales in North America, and Joe Ward, vice president of the Europe, Middle East and Africa region. The firing was first reported by Bloomberg News. Afshar is the second high-level employee to leave the company recently. His termination follows the resignation of Milan Kovac, who was the company's head of its Optimus humanoid robotics program. Kovac said in a post on X that he was leaving Tesla to spend more time with his family. Musk later thanked Kovac publicly for his time with the company. In 2022, Afshar was the subject of an internal investigation at Tesla that focused on his involvement in trying to secure construction materials for a secret project for Musk that included hard-to-get glass. Prior to his job as Tesla vice president, Afshar worked for SpaceX, Musk's aerospace company. Afshar's X account, which had not been updated, said he still works for Tesla, and he praised Musk for his leadership and work ethic following the launch of the company's Robotaxi service in Austin, Texas. "Thank you, Elon, for pushing us all," Afshar wrote. Tesla's stock price has dropped 19% this year, and took an especially hard hit following Musk's association with President Donald Trump, who appointed Musk to oversee the Department of Government Efficiency. DOGE took a broad and aggressive approach to eliminating federal employees, downsizing federal agencies and ending diversity, equity and inclusion programs at some of the nation's largest companies and universities. The company sold fewer cars in 2024 than it did in 2023, the first time sales dropped since Tesla began mass producing EVs. Its profits fell 71% in the first quarter of 2025. European sales dropped 28%, and dropped for a fifth straight month in May. The European Automobile Manufacturers Association said buyers are shifting to cheaper Chinese models. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
44 minutes ago
- Bloomberg
Shein to File Confidentially for Hong Kong IPO, Reuters Says
Shein Group Ltd. is planning to confidentially file a draft prospectus for an initial public offering in Hong Kong in the coming days, Reuters reported, which would mark the third venue the company has sought to debut in. The move to apply confidentially is rare in Hong Kong, where companies generally make such filings public, Reuters reported. The fast-fashion retailer had a globe-trotting path to the public markets, with its prior attempts to list in the US and London facing scrutiny over its supply-chain practices and tariff impacts.
